Investment Q&A

Q: How would you compare SPB and AQN for growth and dividend sustainable going foward ?

Q: I bought SJR.B in Jul. 2015 at $27.36. Today, it's $26.57. BMO Investorline Morningstar Canadian Income portfolio and Canada Core portfolio suggests selling this stock and that the fair value is $24.00. Do you agree? They did not raise their dividend in Mar. 2016. If I sell, what can replace it for a secure very long term hold for growing dividend income in a taxable account? BCE? (No banks/financial; I have plenty.)

Q: What are your favourite Canadian renewable companies for a 5 year investment ? Thanks.

Q: Could I have your recommendations for my dividend growth portfolio. I would like to average 4. to 4.5% yield. (Is that a reasonable target? I will have about $100k to deploy in 4 -6 stocks as I bring down my banking sector exposure. I currently have Agt .8%,AD 4.5%, AQN 1.2%, ALA 4.5%, BCE 6.1%, DIV 4.2%, ENB 5.8%, IPL 6.7%, PUR 2.6%, SPB 1.8%, SYZ 2 %. I am think of adding to AQN , PUR and SYZ maybe adding BAD and Fortis. I look forward to your ideas and thoughts.

ps could please tell me what the lessons learned are from crx I am still smarting and thinking of adding stops and not sure which stocks should have stops and what percentage of the current price to employee. mike

Q: Having an Income portfolio including the above companies, I'm unsure of the effects of a potential increase in US rates in say December 2016 when at the same time the Bank of Canada holds rates or even maintains dovish tone signally near term rate cut. Will holding Canadian interest rates steady offset what would otherwise be negative pressure of a US rate increase on Canadian dividend paying stocks? Thanks

Q: I am looking for yield but also growth, would you suggest Enercare or Algonquin? Thanks for your help,
Pierre

Q: I have about 9% in utilities in an otherwise balanced portfolio. All these companies have dropped from 5 to 10% in value over the last while. Can you explain this. Should I lighten up on utilities, and if so, which one(s) should I sell? Thanks.

Q: Good Morning
Their are rumblings about The Ontario Government tearing up their pricey Renewable Energy contacts (National Post-Solomon). What is the probability of this happening and what renewable companies Transalta, Brookfield, Algonquin etc would be damaged.

An enjoyable Thanksgiving to al

Q: Planning to add 2 of the suggested utilities to a growth portfolio or alternates that you might suggest & the rationale. Thank you.

Q: My portfolio consists of 6-7% Utilities. I would like to add AQN. With everyone targeting Utilities as a sector to suffer under higher rates, is this a good idea? If so would you suggest the common or the Investment receipts and how big a position.

Thanks to the Team


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Q: I am looking to crystallize gains in PPL, and seeking an alternative in the pipeline/utility sector. I currently own ENB and TRP as well as FTS. What do you recommend for diversification in combination with those three?

Q: I have zero exposure to utilities at the present time. I believe that you advocate having exposure to all sectors of the market because you never can know for certain what the market will do. While most people expect interest rates to rise and utilities to under perform, the same could have been said in 2013. Which is your favourite utility and which utility offers the best dividend growth to potentially offset future interest rate increases. I am looking for low volatility, good dividend yield and good dividend growth.

Thank you,
Jason

Q: Regarding Richard's question re AQN. I think he was asking about the instalment receipts in particular. They were recommended on BNN Market Call.
I participated in the EMA and FTS instalment receipt deals with their large USacquisitions. In both cases things worked out well. Of course it has been a hot market for utilities so the underlying shares increased in value while I was holding the receipts, which obviously helps.
Two comments 1) These deals make sense only if you would be comfortable owning the shares when the call for funds comes (when you have to put up the other 2/3 of cash). It is kind of like selling a put. The income is nice, but you have to be ready to buy the security if things go wrong. 2) best not to buy in a registered account, unless you have room to add the additional 2/3 cash to buy the shares. You don't want to be forced to sell the receipts at a bad time just because you are trapped by your RRSP or TFSA limit.
Hope this was useful.
Cheers
John

Q: can you look at the investment receipt for Algonquin Power. is it worthwhile at this value?

Q: Since this stock has gone up a lot, is it time to move to another stock in the sector like AQN or FTS?

Thanks

Dave.

Q: Good morning Peter, Ryan, and Team,

Apparently Enron has reared its ugly head once again. This article from the Globe and Mail describes a lawsuit announced by the Alberta government:

http://www.theglobeandmail.com/news/alberta/e-mails-reveal-how-albertas-enron-clause-was-orchestrated/article31303953/

From the article, "The court action names Enmax; TransCanada; and Capital Power. It also names electricity generator Atco Ltd., the Balancing Pool, which is a public body, and its own power regulator as defendants. The court case is slated for November."

Enmax isn't a publicly traded company, but the other two are. (I don't own either). Are there any other companies that may be impacted from the fallout that will occur from this lawsuit? I'm thinking of AQN and FTS as examples.

As always, thanks for your insight.

Q: What are your top recommendations for Canadian power producers. I am selling Northland Power (NPI) based on my advisor's recommendation and would like to re-invest in the same sector.

Q: Hi 5i I notice members are asking about renewable energy companies. I would like to add 2 renewable energy companies to my portfolio, at present I have none. I'm a very long term investor, something like till the day I die. Thx for your wise advise, I was starting to believe in the " sell in May and go away " but this year staying with the market has been very good for me thanks to the 5i group. Thx again Gerry

Q: I sold all my Oil and gas stocks in the fall of 2014 and all the pipelines in early 2015. Currently have no securities in this sector. I am not risk averse. Do you think this is a reasonable time to re-enter? I would appreciate some suggestions for holdings in my RRSP.Thanks and have a good day.

Q: Alqonquin, Capial Power, and Altagas have rate reset preferred shares selling at a significant discount with reset dates in 2018. With a 5 year Government rate of .55 to .7 they have issues that will still offer a very attractive rate of return. For a conservative investor would you rate these issuing companies as an acceptable TFSA investment?. How would you rank them?

Thanks Team